a gross profit of P50,000. ABC still have 30% of the inventory from the upstream sale. What should ABC report as investment income?
a gross profit of P50,000. ABC still have 30% of the inventory from the upstream sale. What should ABC report as investment income?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter12: Corporations: Organization, Capital Structure, And Operating Rules
Section: Chapter Questions
Problem 4BCRQ
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solutions must be complete and in good accounting form
At the beginning of the year, ABC Corp. purchased 40% of the outstanding ordinary shares of an investee. It paid P2,500,000. The net assets of the investee were valued P6,000,000 but was only carried in the books at P5,000,000. The difference is attributable to an equipment that has 5 years remaining useful life. During the year, the investee reported P800,000 net income, paid P500,000 dividends and made upstream sale to ABC resulting to a gross profit of P50,000. ABC still have 30% of the inventory from the upstream sale. What should ABC report as investment income?
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